Standard Chartered Bank to Launch Crypto Trading Desk for Bitcoin and Ethereum

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As an experienced financial analyst, I see Standard Chartered’s entry into Bitcoin and Ethereum spot trading as a game-changer for the crypto industry. This move makes history by making Standard Chartered the first major bank to offer such services to customers, surpassing other banking giants like Goldman Sachs who have only provided derivatives.

Based on information from reliable sources cited in a Bloomberg article, the company is preparing to launch a new trading desk specifically focused on Bitcoin (BTC) and Ethereum (ETH). This initiative is reportedly nearing completion and should become operational shortly.

Standard Chartered Makes History

After launching the new platform based in London, which will be under the umbrella of the bank’s WFX FX trading unit, the bank will lead the way among financial giants by providing customers with direct Bitcoin and Ether buying and selling services.

As a researcher studying the evolution of banking services related to cryptocurrencies, I’ve observed that institutions like Goldman Sachs began providing crypto derivative offerings to clients as early as 2022. Yet, these financial behemoths have encountered restrictions when it comes to entering the spot market. The Basel Committee on Banking Supervision has imposed stringent regulations that have impeded their expansion in this area.

The committee suggested imposing stringent new regulations on banks, requiring them to assign a significantly high risk factor of 1,250% to any unprotected crypto investments. This makes it challenging for financial institutions to turn a profit from their crypto-related businesses.

Standard Chartered has been collaborating with regulatory bodies to enable its institutional clients to engage in cryptocurrency trading. (Or, Standard Chartered is cooperating with regulators to provide institutional investors with the ability to trade cryptocurrencies.)

“Our team has been collaborating intently with regulatory bodies to facilitate Bitcoin and Ethereum trading for our institutional clients. This alignment with our broader strategy aims to serve our clients effectively throughout the digital asset sector, encompassing access, safekeeping, tokenization, and interoperability.”

Standard Chartered and Crypto

Standard Chartered, an early entrant among global banks in cryptocurrency spot trading, has been actively participating in the crypto economy.

As a researcher studying technological advancements in the business sector, I came across an exciting development in November 2023. The company introduced a blockchain tokenization platform called Libeara via its venture capital arm, SC Ventures.

As a researcher studying blockchain technology and its applications, I’m excited to share that our platform is currently collaborating with the Singaporean government in exploring the potential use case of issuing tokenized government bonds using their fiat currency.

Standard Chartered has taken significant steps to invest strategically in crypto-focused businesses, such as Zodia Custody and Zodia Markets. The financial institution holds considerable shares in these firms, allowing them to provide custody solutions and over-the-counter trading to institutional clients within the digital asset sector.

Last year, it was revealed that the bank intended to initiate digital asset custody solutions in Dubai, enabling institutional investors to securely store their Bitcoin and Ethereum holdings.

In May 2024, I discovered that the bank had successfully executed a Euro-denominated cross-border transaction between Hong Kong and Singapore using Partior, a globally unified blockchain infrastructure.

The bank was the initial Euro settlement institution to launch on the platform according to the company’s announcement. Nevertheless, its partnership with Partior started in November 2022, following the bank’s strategic investment in the blockchain firm.

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2024-06-21 17:11